OPENING CALL
Stock futures were struggling for direction Thursday as sky-high artificial-intelligence valuations continue to prey on the minds of investors.
After this week's jitters over the AI trade, and Supreme Court skepticism about Trump's sweeping tariffs , the focus is back on the health of corporate America.
On top of a raft of earnings reports, investors are set to learn if Elon Musk's vast pay package won the approval of Tesla shareholders.
Meanwhile, the uncertainty created by the government shutdown could help to reinforce the case for the Federal Reserve to push the pause button on interest-rate cuts in December, First Abu Dhabi Bank said.
Across the Atlantic, the Bank of England is generally expected to hold rates, but some analysts project a 25bp cut.
Stocks to Watch
ArcelorMittal said it was hopeful state support for the industry would boost business next year. Shares jumped 5% in the Netherlands.
AppLovin posted stronger-than-projected quarterly results. Shares rallied premarket.
Duolingo skidded one-fifth premarket after its financial guidance disappointed.
Nissan posted a fifth straight quarterly loss, partly due to U.S. tariffs. Shares fell 1.7%.
Pfizer is preparing to resweeten its offer for Metsera. The weight-loss startup at the center of a bidding war that also involves Novo Nordisk.Metsera jumped 8% premarket. Novo Nordisk rallied 3% in Denmark.
Qualcomm posted better-than-projected earnings, but took a $5.7 billion non-cash charge linked to the One Big Beautiful Bill. Shares fell 3% before the bell.
Robinhood fell premarket, even though quarterly results topped forecasts.
Snap unveiled a deal to integrate Perplexity's AI-powered answer engine directly into Snapchat. Shares soared 17% premarket.
Tesla will reveal if shareholders approved a $1 trillion pay package for CEO Elon Musk. They are also voting on whether Tesla should invest in Musk's xAI startup.
Watch For:
Weekly Jobless Claims (no data during government shutdown), Governor Christopher J. Waller on Central Banking and the Future of Payments at the Bank of Canada 2025 Annual Economic Conference; earnings from Airbnb, ConocoPhillips, Expedia, Warner Bros. Discovery and Vistra
Today's Top Headlines/Must Reads:
- Trump's Tariffs Are a Massive Money Grab. That's Why They Are in Trouble.
- Builders Are Offering Mortgage Rate Discounts. Home Buyers Aren't Biting.
- Is the Drought in Life-Sciences IPOs Over? Two Startups Will Test Demand
MARKET WRAPS
Forex:
The dollar eased after reaching a five-month high against a basket of currencies in the previous session following better-than-expected U.S. data.
The readings fueled doubts over another U.S. interest-rate cut in December.
The euro rose and looks undervalued against the dollar after recent falls, ING said.
Sterling fell against the euro as investors turned cautious ahead of the Bank of England's interest-rate decision. Markets will be listening for any clues on the timing of the next rate cut amid speculation of a move in December.
Commerzbank said sterling is likely to weaken if the BOE leaves rates unchanged but signals a possible rate cut in December.
Bonds:
Treasury yields fell but the outlook pointed to higher yields, according to Pictet Asset Management.
The asset manager reduced its Treasury position to underweight from neutral , amid signs that the market is excessively optimistic about prospects for U.S. rate cuts.
Goldman Sachs said the Treasury's future increase of debt auction sizes were likely to tilt toward shorter-dated Treasurys.
Jefferies remains underweight in Treasurys .
Municipal bonds are currently generating more than twice their five-year average spread over similarly-rated corporate credit and offer attractive entry points for investors, Insight Investment said.
Energy:
Oil prices rose but remained pressured by signs of weaker demand.
The latest EIA report revealed that U.S. crude stockpiles rose by 5.2 million barrels last week, against expectations of a 100,000-barrel decline.
Meanwhile, Saudi Arabia significantly reduced the price of its crude for Asian buyers in December as OPEC+ continues to ramp up production, fueling concerns that demand growth in the region may be softening.
Metals:
Gold prices bounced back above $4,000 as investors assessed the impact of the latest U.S. labor data on the Federal Reserve's policy outlook.
"With the Fed's final 2025 meeting approaching and the U.S. government shutdown delaying key data, traders face heightened uncertainty over the economic outlook and the path of further easing," MUFG said.
Comex gold futures' downward pressure has eased, based on their latest positive price movements, RHB Retail Research said.
Copper
Copper was flat . ANZ said a stronger dollar was pressuring commodities as supply-side issues eased.
TODAY'S TOP HEADLINES
Diageo Lowers Guidance on Weakness in U.S. and China
Diageo cut its full-year guidance for sales and profit growth, citing weakness in the U.S. and China, as booze makers struggle to get customers to spend on high-end drinks.
The U.K. company behind Johnnie Walker whisky, Guinness beer and Baileys Irish Cream liqueur is looking to revive growth as it continues a search for a new boss. The company in July parted ways with Debra Crew, its chief executive of two years, and has yet to name a permanent replacement.
Shipping Giant Maersk Lifts Lower End of Earnings Guidance on Strong Demand
Danish shipping giant A.P. Moller-Maersk raised the lower end of its full-year earnings guidance as strong container demand and cost efficiencies counter falling freight rates.
Despite heightened market challenges from global trade tensions and macroeconomic uncertainty, Maersk's main shipping business posted a 7% increase in third-quarter freight volumes, buoyed by exports from East Asia, with China the main driver of volume growth supported by strong demand for technology goods.
Qualcomm Swings to Fourth-Quarter Loss On Tax Charge; Revenue Rises
Qualcomm swung to a loss in the fiscal fourth quarter following a large tax-related charge, but recorded a 10% increase in sales.
The semiconductor and software maker on Wednesday posted a loss of $3.12 billion, or $2.89 a share, in the quarter ended in September, compared with a profit of $2.92 billion, or $2.59 a share, a year earlier.
Pfizer Preps Improved Offer in Metsera Bidding War
Pfizer is preparing to sweeten its offer again for Metsera, the weight-loss drug startup at the center of a bidding war that also involves Novo Nordisk.
New York-based Pfizer is making plans to deliver a fresh bid Wednesday, according to people familiar with the matter, ahead of a deadline it has to respond to Novo Nordisk's latest proposal.
OpenAI walks back comments about government support for its AI spending
How OpenAI plans to pay for spending plans that dwarf its revenue is a big question these days. But after suggesting Wednesday that perhaps the government could get involved, the company is now walking back those comments.
CFO Sarah Friar said at the Wall Street Journal's Tech Live event on Wednesday that the ChatGPT creator was "looking for an ecosystem of banks, private equity, maybe even governmental" partners, as she mused about "the ways governments can come to bear."
Global Markets Stabilize After AI Stocks Reverse Losses
Markets started Thursday on a more stable footing after a rebound on Wall Street saw artificial-intelligence related shares recover ground.
The Nasdaq composite rose 0.6% after slumping in the prior session, the S&P 500 gained 0.4% and the Dow Jones Industrial Average ended up 0.5%. Still, U.S. stock futures edged slightly lower early in European business hours, Asian shares closed higher tracking the overnight action on Wall Street, while in Europe moves in major stock markets were muted.
U.S. to Reduce Flight Traffic by 10% at 40 Airports Because of Shutdown
The Federal Aviation Administration said it was ordering traffic to be reduced by 10% at 40 major airports while air-traffic controllers work without pay during the government shutdown.
Transportation Secretary Sean Duffy said the reduction, starting on Friday, would keep air travel safe as flight delays and cancellations pile up. The shutdown, which began Oct. 1, has exacerbated staffing issues in the ranks of federal transportation employees, leading to thousands of delayed or canceled flights, and long lines at security checkpoints.
Saudi Arabia Cuts December Oil Price for Asia in Sign of Caution
Saudi Arabia sharply reduced the price of its crude for Asian customers, a sign of caution from the world's largest oil exporter just days after OPEC+ decided to pause output increases for early next year.
State-owned oil giant Saudi Aramco set the official selling price for December loadings of its flagship Arab Light crude to Asia at $1 a barrel above the Oman/Dubai average, down from $2.20 in the previous month. The price is seen as a key indicator of the kingdom's outlook on regional demand.
German Industrial Production Rebounds Weakly Amid Tentative Hopes Over Outlook
Industrial production in Europe's largest economy rebounded less than expected in September, amid hopes that the outlook could be changing for the sector ahead of large-scale government investment.
Output rose 1.3% on month, Germany's statistics agency Destatis said Thursday, offsetting some of the 3.7% decline in August. Economists polled by The Wall Street Journal expected a larger 2.5% uptick.
UPS Plane That Crashed Was 34 Years Old-and Repaired in September
The United Parcel Service cargo plane that crashed Tuesday was 34 years old and needed a critical repair on its fuel tank in September.
The MD-11 plane was grounded in San Antonio from Sept. 3 through at least Oct. 18, according to flight records. Maintenance records with the Federal Aviation Administration show the jet needed a permanent repair to fix a crack in the fuel tank before it returned to service.
Hundreds of Hamas Fighters Are Stuck in Tunnels in Israeli-Controlled Gaza
A detachment of Israeli engineering troops was demolishing tunnels behind the withdrawal line in Gaza last month when Hamas militants sprang from a hidden shaft, fired an antitank missile toward their excavator and killed two soldiers.
A little over a week earlier, Israel and Hamas had agreed to a cease-fire. Israel responded to the deadly encounter with a round of airstrikes on Gaza that killed dozens of people.
More Arrests Are Made in Alleged ISIS 'Pumpkin' Terrorist Plot
Two men in New Jersey have been charged as part of an ISIS terrorist plot against LGBTQ bars on Halloween, according to Alina Habba, acting U.S. attorney for the District of New Jersey.
The arrests were part of a Federal Bureau of Investigation and New York City Police Department probe that apprehended two other suspects, one in Washington state and the other in the U.K., according to a law-enforcement official with knowledge of the investigation.
Write to gareth.mcpherson@wsj.com
TODAY IN CANADA
Earnings:
Altus Grp Ltd 3Q
ARC Resource 3Q
BCE Inc. 3Q
Bombardier 3Q
Canada Goose 2Q
Cnd Ntrl Rsrcs 3Q
Cineplex Inc. 3Q
Cipher Pharma 3Q
Definity Fncl 3Q
Denison Mines 3Q
dentalcorp 3Q
Doman Bldg Mtrls 3Q
Dominion Lnding 3Q
Enerflex Ltd. 3Q
Fairfax Fincl 3Q
Fennec Pharma 3Q
Foran Mining 3Q
HealWELL AI Inc. 3Q
IGM Fincl Inc. 3Q
Interfor Corp. 3Q
Jamieson Wllnss 3Q
Knight Therap. 3Q
Lassonde Indus 3Q
Leon's Furniture 3Q
Lightspd Comm 2Q
Lundin Gold Inc. 3Q
NFI Grp Inc. 3Q
Pason Syss 3Q
RB Global Inc. 3Q
Saputo Inc. 2Q
Silvercorp Mtls 2Q
TC Energy Corp 3Q
TerrAscend 3Q
Tidewater Rnwbls 3Q
TransAlta Corp 3Q
Trisura Grp 3Q
Vitalhub Corp. 3Q
WELL Hlth Tech 3Q
Whton Prcs Mtls 3Q
Economic Indicators $(ET)$:
1000 Ivey Purchasing Managers Index for October
1030 Bank of Canada Governor Tiff Macklem appears before the Standing Senate Committee on Banking, Commerce and the Economy
1400 Bank of Canada John Kuszczak Memorial Lecture
Stocks to Watch:
AirBoss 3Q Loss/Shr 11c; 3Q Sales $100.4M; 3Q Adj EPS 0c
Allied Gold 3Q Loss/Shr 15c; 3Q Rev $305.6M
Badger Infrastructure 3Q EPS 86c; 3Q Rev $237.3M; 3Q Adj EPS
Baylin Technologies 3Q Rev C$16.8M; 3Q Loss/Shr C$0.01; 3Q Loss C$1.1M
B2Gold 3Q EPS 1c; 3Q Rev $782.9M
BSR REIT 3Q Rev $33.1M; 3Q Net $2.9M
Canfor Corp 3Q Loss/Shr C$1.48; 3Q Loss C$172.4M; 3Q Sales C$1.26B
Canfor Pulp Products 3Q Adj Loss/Shr C$0.19; 3Q Loss/Shr C$0.19; 3Q Loss C$12.4M; 3Q Sales C$164.6M
Centerra Gold Announces TSX Acceptance of Renewed Normal Course Issuer Bid; May Buy Up to 9.9% of Shares
DIRTT Environmental 3Q Loss/Shr 2c; 3Q Rev $37.7M; Sees 4Q Rev $48M-$52M
Dream Residential REIT 3Q Rev $12.4M
DRI Healthcare Trust 3Q Loss/Shr $1.05; 3Q Adj EPS 55c
Fortuna Mining 3Q Sales $251.4M; 3Q Adj EPS From Continuing Ops 17c; Fortuna Mining: On Track to Meet Annual Production Guidance
GDI Integrated Facility 3Q EPS C$0.58; 3Q Rev C$615M
Genesis Land 3Q EPS C$0.16; 3Q Net C$8.59M; Q Rev C$70M
Goeasy 3Q EPS C$1.98; 3Q Rev C$440.2M; 3Q Adj EPS C$4.12
Gold Royalty 3Q Rev $4.1M, a Record; 3Q Adjusted Ebitda $2.5M, Also a Record; 3Q Loss/Shr 1c; Portfolio Ramp-Up, With New Mines Entering Production, Led to Doubling in Rev on Year; CEO: On Track to Continue Using Cash Generated From Ops to Delever Throughout 2026; Gold Royalty: Adopts Shareholder Rights Plan; Plan Adopted After Reviewing Recent Trading Volumes, Activity; Didn't Adopt Plan in Response to Any Specific Takeover Bid or Other Proposal to Acquire Control of Co; Not Aware of Any Pending or Contemplated Takeover Bid or Other Proposal
High Liner Foods 3Q Sales $248.62B; 3Q EPS 16c; 3Q Adj EPS 14c
Kinaxis 3Q EPS 58c; 3Q Rev $134.6M; Sees FY25 Rev $535M-$550M
K-Bro Linen Names Rona Ambrose to Board
Kiwetinohk Energy 3Q EPS C$0.39
Lundin Mining 3Q Adj EPS 18c; 3Q Net $184.6M; 3Q Rev $1.01B; 3Q EPS 19c; 3Q EPS Cont Ops 17c
MCAN Mortgage 3Q EPS C$0.52
Northview Residential REIT 3Q EPS C$0.27; 3Q Rev C$69.8M; 3Q FFO C$0.48/Shr
Nutrien 3Q EPS 96c; 3Q Sales $6.01B; Initiating Review of Strategic Alternatives for Phosphate Business; 3Q Adj EPS 97c
OR Royalties 3Q EPS 44c; Rev $71.6M; 3Q Adj EPS 22c
Rubellite Energy 3Q EPS C$0.37; 3Q Rev C$58.3M
Russel Metals 3Q EPS C$0.63; 3Q Rev C$1.17B
Savaria 3Q EPS C$0.27; 3Q Rev C$224.8M
STEP Energy Services 3Q EPS C$0.31; 3Q Rev C$227.2M
Surge Energy 3Q Rev C$143.3M; 3Q Net C$7.2M
Sun Life Raises Dividend to C$0.92
Tourmaline Oil 3Q EPS C$0.49
Vermilion Energy 3Q Sales C$449.5M; 3Q EPS C$0.02; 3Q Cont Ops Loss/Shr C$0.03
WSP Global 3Q Adj EPS C$2.82; Narrows 2025 View to Net Revenues C$13.8B-C$14B; 3Q Revenue C$4.53B; 3Q EPS C$2.17
Expected Major Events for Thursday
00:30/JPN: Oct Japan Services PMI
06:00/RUS: Oct Russian Services PMI
07:00/GER: Sep Industrial Production Index
07:45/FRA: 3Q Flash estimate of job creation
09:30/UK: Oct S&P Global UK Construction PMI
12:00/UK: UK interest rate decision
12:00/UK: Bank of England Monetary Policy Report
12:30/US: Oct Challenger Job-Cut Report
13:30/US: 3Q Preliminary Productivity and Costs (No data during govt shutdown)
13:30/US: 11/01 Unemployment Insurance Weekly Claims Report - Initial Claims (No data during govt shutdown)
13:30/US: U.S. Weekly Export Sales (No data during govt shutdown)
15:00/CAN: Oct Ivey Purchasing Managers Index
15:00/US: Sep Monthly Wholesale Trade (No data during govt shutdown)
15:30/US: 10/31 EIA Weekly Natural Gas Storage Report
17:00/US: Oct Monthly U.S. Retail Chain Store Sales Index
21:30/US: Federal Discount Window Borrowings
21:30/US: Foreign Central Bank Holdings
23:30/JPN: Sep Household Spending
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Expected Earnings for Thursday
Aligos Therapeutics Inc $(ALGS)$ is expected to report for 3Q.
Alpha Metallurgical Resources Inc (AMR) is expected to report $-0.55 for 3Q.
Altice USA Inc (ATUS) is expected to report $-0.06 for 3Q.
Aspen Aerogels Inc (ASPN) is expected to report $-0.02 for 3Q.
BGC Group Inc $(BGC)$ is expected to report $0.05 for 3Q.
BlackRock TCP Capital Corp $(TCPC)$ is expected to report $0.30 for 3Q.
C4 Therapeutics Inc $(CCCC)$ is expected to report $-0.32 for 3Q.
Canadian Natural Resources Ltd (CNQ,CNQ.T) is expected to report $0.53 for 3Q.
Chimera Investment Corp $(CIM)$ is expected to report for 3Q.
City Office REIT Inc (CIO) is expected to report $-0.10 for 3Q.
Clear Channel Outdoor Holdings Inc (CCO) is expected to report $-0.06 for 3Q.
ConocoPhillips $(COP)$ is expected to report $1.41 for 3Q.
Core Natural Resources Inc (CNR) is expected to report for 3Q.
CoreCard Corp (CCRD) is expected to report $0.25 for 3Q.
Cummins Inc $(CMI)$ is expected to report $4.64 for 3Q.
DXP Enterprises Inc (DXPE) is expected to report $1.43 for 3Q.
Dorian LPG Ltd (LPG) is expected to report $1.35 for 2Q.
DuPont de Nemours Inc (DD) is expected to report $0.98 for 3Q.
Fastenal Co $(FAST)$ is expected to report.
Gogo Inc $(GOGO)$ is expected to report $0.07 for 3Q.
Granite Construction Inc $(GVA)$ is expected to report $2.19 for 3Q.
HarborOne Bancorp Inc $(HONE)$ is expected to report $0.19 for 3Q.
Hyatt Hotels Corp $(H)$ is expected to report $0.19 for 3Q.
Janus International Group Inc (JBI) is expected to report $0.18 for 3Q.
Lantheus Holdings Inc $(LNTH)$ is expected to report $0.81 for 3Q.
Leatt Corp (LEAT) is expected to report for 3Q.
MFA Financial Inc (MFA) is expected to report $0.28 for 3Q.
Melco Resorts & Entertainment Ltd $(MLCO)$ is expected to report $0.13 for 3Q.
Middleby Corp $(MIDD)$ is expected to report $1.90 for 3Q.
NetScout Systems Inc $(NTCT)$ is expected to report $0.16 for 2Q.
Netlist Inc (NLST) is expected to report $-0.04 for 3Q.
Onity Group Inc $(ONIT)$ is expected to report $2.24 for 3Q.
Organon & Co $(OGN)$ is expected to report $0.94 for 3Q.
Parker Hannifin Corp $(PH)$ is expected to report $5.77 for 1Q.
SelectQuote Inc $(SLQT)$ is expected to report for 1Q.
SharkNinja Inc $(SN)$ is expected to report $1.27 for 3Q.
Teleflex Inc $(TFX)$ is expected to report $1.39 for 3Q.
Titan International Inc $(TWI)$ is expected to report $-0.04 for 3Q.
TransAlta Corp (TA.T,TAC) is expected to report for 3Q.
Tripadvisor Inc $(TRIP)$ is expected to report $0.34 for 3Q.
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ANALYST RATINGS ACTIONS
American Water Works Raised to Hold From Underperform by Jefferies
Archer Daniels Midland Cut to Underweight From Neutral by JP Morgan
Biohaven Cut to Market Perform From Outperform by William Blair
Boise Cascade Raised to Outperform From Market Perform by BMO Capital
CervoMed Raised to Buy From Neutral by HC Wainwright & Co.
Denny's Cut to Hold From Buy by Benchmark
Farmer Mac Raised to Outperform From Market Perform by Keefe, Bruyette & Woods
IPG Photonics Raised to Buy From Sell by Citigroup
Kirby Corp Raised to Buy From Neutral by Citigroup
Madrigal Pharmaceuticals Raised to Overweight From Neutral by Cantor Fitzgerald
Pinterest Cut to Neutral From Buy by Rosenblatt
Qualys Raised to Neutral From Underweight by Piper Sandler
Rapid7 Cut to Hold From Buy by Jefferies
RealReal Raised to Overweight From Sector Weight by Keybanc
Rigel Pharmaceuticals Raised to Buy From Hold by Jefferies
RPC Inc Cut to Hold From Buy by Freedom Capital Markets
Sarepta Therapeutics Raised to Outperform From Neutral by Mizuho
Southern Co Cut to Hold From Buy by Jefferies
Super Micro Raised to Outperform From Neutral by KGI Securities
Tractor Supply Raised to Outperform From In-Line by Evercore ISI Group
Trex Co Cut to Market Perform From Outperform by William Blair
Trex Co Cut to Neutral From Outperform by Zelman & Assoc
Trex Co Cut to Underperform From Buy by B of A Securities
UL Solutions Cut to Neutral From Overweight by JP Morgan
Ventyx Biosciences Raised to Buy From Neutral by HC Wainwright & Co.
Welltower Raised to Outperform From In-Line by Evercore ISI Group
Wingstop Shares Rise on Healthier Growth Expectations
Yum Brands Raised to Outperform From In-Line by Evercore ISI Group
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
November 06, 2025 06:12 ET (11:12 GMT)
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